Banks may close inactive accounts after three years under proposed rules

Banks may close inactive accounts after three years under proposed rules

Vietnamese banks may be allowed to close payment accounts that have been inactive for three years or more under proposed amendments to regulations governing non-cash payments.

A customer uses a mobile banking app. Banks could be allowed to close accounts that have been inactive for three years or more under a proposed regulation. — VNS Photo Bồ Xuân Hiệp

Vietnamese banks may be allowed to close payment accounts that have been inactive for three years or more under proposed amendments to regulations governing non-cash payments, as authorities seek to reduce fraud and improve oversight of dormant accounts.

The proposal is included in a draft decree amending Decree No. 52 on non-cash payments, which is currently being circulated for public comment by the State Bank of Vietnam (SBV).

According to the central bank, many legally opened payment accounts are no longer used by customers and remain inactive for long periods.

Others may be anonymous or fraudulently opened accounts created using outdated or forged identification documents.

Under current regulations, payment accounts can be closed at the account holder's request, upon the account holder's death, or when prohibited acts are detected.

For corporate customers, accounts may be closed when an organisation ceases operations.

However, the SBV noted that existing rules do not provide a mechanism for handling long-abandoned accounts when banks are unable to reach account holders.

To address this gap, the draft decree would allow banks to close accounts that have recorded no transactions for at least three years, unless a different arrangement has been agreed with customers.

Any remaining balances would continue to be monitored by banks and returned to the lawful beneficiaries upon request.

The SBV said the proposed three-year threshold was based on international practices.

In the US, accounts that remain inactive for three to five years are generally classified as dormant accounts, with funds transferred to state authorities for safekeeping as unclaimed property. Owners can later reclaim their money through state agencies.

The proposal comes as Việt Nam continues to expand financial inclusion and digital payments.

According to the SBV, nearly 87 per cent of Vietnamese adults had bank accounts as of early this year, while the number of non-cash payment transactions has been growing by nearly 59 per cent annually.

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